Updated almost 10 years ago on . Most recent reply
Looking for a Lender to cash out a few rentals in Atlanta
Hello BP folks,
I am looking for a lender to cash out a few of my rentals in Atlanta. Do you have any suggestions on reputable lenders?
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Well, this is what I learned so far...
Cashing out the properties - if you go with a conventional loan, you can cash out up to 4 properties. The good news, you can do it for as low as 4% annual, the bad news, you have to take them out of the company name and put it into your name, then, after refinancing, you can put them back into the company. Interesting! The process takes anywhere from 30 to 60 days to complete.
Not all Hard money lenders offer the the 30 year fixed financing to cash out, mostly, they are interested in fix and flips. Short, sweet and to the point. Rates are much higher. The hard money lenders that are doing the long term rental, have rates that go as low as 53/8% and as high as 7%. Time to close is usually 7 to 14 business days. You do have to watch out for hidden fees and other expenses. Read the mortgage documents very thoroughly (preferably ahead of time) so you know what you are getting into.
I am still debating the question, should I do the conventional or the hard money. The reason I am still debating is because I am not comfortable taking the properties out of the company name and putting it into my name, however, doing that offers me a much lower interest rate.
Am I wrong to NOT want to take the properties out of the company name? Am I opening myself up to liability if I put the properties into my own name? Maybe I am a bit paranoid, but I've been sued before, and having that extra layer of separation of personal and business is giving me warm and fuzzes. What do you think?
BP community, I need your input!